Morgan Joseph is out with a very positive call on Towerstream Corp (NASDAQ:TWER) saying the company's service offering is winning at unprecedented rate. Early last week, Towerstream began offering a new 8 Mbps data connectivity service priced at $1,000 in select markets. Over the eight days the service has been offered, Towerstream has won a record 27 contracts and 58 proposals.
The attractiveness of the new service pricing is driving new customer win statistics equivalent with typical monthly efforts, in just one week's time. Offered late in the fourth quarter, and based on experimental pricing adjustments, they don't believe that Towerstream had intended to offer a new product at this juncture, nor do they believe that the service offering should have a meaningful impact on 4Q07 results.
MJ continues to believe Towerstream provides a service that is dearly wanted and has little similarly focused competition. Price target stands at $5.00
Notablecalls: Yes, it's thin but do read the call! Can this be any more positive?
Also, talking to a long-term holder of TWER, there seems to be a large naked short position in the stock. Must say I kinda felt their presence after I posted this call on my site. The stock was shot down 10c 30 minutes after the post. Maybe MJ's comments will cause a short squeeze in the stock?